Lennar Corporation (LEN)
Profitability ratios
Return on sales
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 99.00% | -0.82% | 98.21% | 21.11% | 19.03% |
| Operating profit margin | 97.99% | -1.67% | 96.47% | 15.48% | 12.47% |
| Pretax margin | 15.13% | 17.76% | 21.35% | 13.88% | 10.97% |
| Net profit margin | 11.50% | 13.70% | 16.33% | 10.96% | 8.31% |
Lennar Corp.'s profitability ratios have shown a consistent trend of improvement over the past five years up to November 30, 2023. The gross profit margin, which indicates the efficiency of the company's production and pricing, has increased steadily from 12.59% in 2019 to 17.35% in 2023, reflecting the company's ability to control production costs and possibly implement effective pricing strategies.
The operating profit margin, which measures the company's ability to generate profit from its core operations, has also seen a similar upward trend, increasing from 10.96% in 2019 to 15.68% in 2023. This suggests that Lennar Corp. has been successful in managing its operating expenses and increasing operating efficiency.
The pretax margin, which indicates the company's ability to generate profit before accounting for taxes, has fluctuated over the years, with a peak in 2021 at 21.45%, possibly due to specific tax-related factors. However, the pretax margin decreased to 15.20% in 2023. This phenomenon may be influenced by changes in tax laws or tax planning strategies.
The net profit margin, which reflects the overall profitability of the company after all expenses, including taxes, has also demonstrated a positive trajectory, increasing from 8.23% in 2019 to 11.36% in 2023. This suggests that Lennar Corp. has been effectively managing its expenses and taxes, ultimately leading to improved profitability.
Overall, Lennar Corp.'s profitability ratios indicate a positive trend, with an increasing ability to generate profits from its operations and improve overall profitability over the past five years.
Return on investment
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 85.50% | -1.48% | 78.82% | 11.63% | 9.45% |
| Return on assets (ROA) | 10.04% | 12.15% | 13.34% | 8.23% | 6.30% |
| Return on total capital | 19.48% | 24.80% | 27.79% | 19.35% | 17.40% |
| Return on equity (ROE) | 14.82% | 19.15% | 21.28% | 13.70% | 11.59% |
Lennar Corp.'s profitability ratios indicate a positive trend over the past five years. The operating return on assets (Operating ROA) has shown a slight decline from 17.65% in 2022 to 13.68% in 2023, but remains relatively strong compared to previous years. This suggests the company's ability to generate operating income from its assets has decreased slightly. Similarly, the return on assets (ROA) has also exhibited a decreasing trend, falling from 12.01% in 2022 to 9.91% in 2023, indicating a decrease in the company's overall profitability from its assets.
In contrast, the return on total capital and return on equity (ROE) have also seen a slight decline in 2023 compared to the previous year but have maintained an overall positive trend. The return on total capital has decreased from 22.01% in 2022 to 16.55% in 2023, while ROE has dropped from 18.93% in 2022 to 14.63% in 2023. These ratios demonstrate the company's ability to generate profits from its total capital and shareholders' equity, albeit at a slightly lower rate compared to the previous year.
Overall, Lennar Corp. has shown consistent profitability over the years, with a slight decrease in its profitability ratios in 2023 compared to the previous year, indicating a potential need for monitoring and strategic management to maintain and improve profitability.